A fiduciary is an organization or individual that holds the critical power and responsibility of acting on behalf of others. A fiduciary pledges to carry out their daily duties honestly and through good faith. A fiduciary duty requires professionals like financial advisors and attorneys to operate in the person’s paramount financial interests. Positions that incorporate fiduciary duty include estate executors, trustees of a trust, attorneys, real estate agents, and heads of corporations.
Fiduciaries habitually have two primary duties: duty of loyalty and duty of care. Depending on the industry they are working in, fiduciaries may be required to uphold diverse or additional requirements. For instance, fiduciaries operating in the financial province like registered investment advisors, directors of corporations, and financial advisors must obey, at a minimum, the duty of loyalty and duty of care. Duty of loyalty requests fiduciaries not to harvest any undisclosed personal or economic conflict of interest. This means they must not utilize their position to further private interests. Duty of care instructs fiduciaries to execute informed business decisions after carefully and skillfully reviewing accessible information about their clients.
Suppose you are a fiduciary involved in handling an employee benefit plan. In that case, Colonial Surety Company offers fiduciaries an easy way to protect themselves from covered plan participant lawsuits with fiduciary liability insurance. What’s more, you can successfully manage a data-breach and safeguard the plan with cyber liability insurance—all found in our ERISA bond packages. Click here to obtain your ERISA fidelity bond package today.